UPDATE 3-Peru cenbank hikes interest rate for first time in 4 years

LIMA, Sept 10 (Reuters) - Peru's central bank unexpectedly
hiked its benchmark interest rate for the first
time in four years on Thursday to tame currency-driven
inflation, and said there was scope for further increases.

The 25-basis-point hike, to 3.50 percent, was forecast by
only three out of 14 analysts polled by Reuters this week.

The central bank said it could raise the rate again to bring
inflation back into its 1-3 percent target range but stressed
the increase did not mark the start of a tightening cycle.

One analyst said he anticipated a second hike before the end
of the year.

Policy remained expansive, the central bank said, with the
new level equivalent to a real interest rate of 0.5 percent.

"The board is closely watching inflation forecast and its
determinants to consider, if necessary, additional adjustments
to the benchmark interest rate," the central bank said in a
statement.

However, it added that inflation has been driven by the sol
currency's depreciation and food supply shocks,
and said those "factors that shouldn't generally translate to
prices in the rest of the economy."

Peru's rate increase comes amid continued uncertainty over
whether the U.S. Federal Reserve will raise interest rates at
its policy meeting next week.
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